ArcLight Capital

CenterPoint Energy, Inc., OGE Energy and ArcLight Capital Partners closed on the formation of the previously announced partnership that includes CenterPoint Energy's interstate pipelines and field services businesses and the midstream business of Enogex LLC. CenterPoint Energy, OGE Energy and ArcLight hold approximately 58.3 percent, 28.5 percent and 13.2 percent limited partner interests in the partnership, respectively.

The past year has allowed the North American power sector to continue its recovery, but it has been a treacherous time for investing. Asset values, and the value of their associated debt instruments, are being driven in the short term by an extreme fuel market and in the long term by a back-to-basics mindset among electric utilities. Still, asset valuations in most markets are not yet at replacement costs, leaving current investors with a residual level of risk.

Buying Time

Slowly and cautiously, utilities are moving back into growth mode.

The air is buzzing with talk of mergers and acquisitions (M&A). It can be heard in the boardroom and on the trading floor. Bankers hear it, and they see their deal backlog beginning to grow. Fund managers hear it, as they hunt for the best buys in the market before strategic investors snatch them up. Financial advisers and lawyers hear it, too; their phones are ringing more than they have in years.